---
type: decision
entity_type: decision_market
name: "Dean's List: Update Liquidity Fee Structure"
domain: internet-finance
status: passed
parent_entity: "[[deans-list]]"
platform: "futardio"
proposer: "Dean's List team"
proposal_url: "https://v1.metadao.fi/deans-list/trade/B8WLuXqoBb3hRD9XBCNuSqxDqCXCixqRdKR4pVFGzNP"
proposal_date: 2025-01-14
resolution_date: 2025-01-17
category: "mechanism"
summary: "Increase swap liquidity fee from 0.25% to 5% DLMM base fee, switch quote token from mSOL to SOL, creating tiered market structure"
tracked_by: rio
created: 2026-03-24
source_archive: "inbox/archive/2025-01-14-futardio-proposal-should-deans-list-dao-update-the-liquidity-fee-structure.md"
related:
- "{\"Dean's List\": 'Approve Treasury De-Risking Strategy'}"
- "{'IslandDAO': 'Implement 3-Week Vesting for DAO Payments'}"
- "Dean's List: Approve Treasury De-Risking Strategy"
- "IslandDAO: Implement 3-Week Vesting for DAO Payments"
reweave_edges:
- "{\"Dean's List\": 'Approve Treasury De-Risking Strategy|related|2026-04-18'}"
- "{'IslandDAO': 'Implement 3-Week Vesting for DAO Payments|related|2026-04-18'}"
- "Dean's List: Approve Treasury De-Risking Strategy|related|2026-04-19"
- "IslandDAO: Implement 3-Week Vesting for DAO Payments|related|2026-04-19"
---

# Dean's List: Update Liquidity Fee Structure

## Summary
Dean's List DAO approved increasing their swap liquidity fee from 0.25% dynamic pool to 5% DLMM base fee (up to 10%), switching quote token from mSOL to SOL, and establishing a tiered market structure where the DAO pool captures revenue from large trades needing deep liquidity while individual LPs serve smaller trades at lower fees.

## Market Data
- **Outcome:** Passed
- **Proposal Account:** B8WLuXqoBb3hRD9XBCNuSqxDqCXCixqRdKR4pVFGzNP
- **Duration:** 2025-01-14 to ~2025-01-17
- **Current Monthly Volume:** 46,228 USDC (06 Dec - 06 Jan)

## Revenue Impact
- Current daily fee revenue (0.25%): ~3.85 USDC
- Projected daily fee revenue (5%): ~77 USDC (20x increase)
- Conservative annual treasury growth: ~19,416 USDC
- Optimistic annual treasury growth: ~24,960 USDC

## Significance
Demonstrates futarchy-governed fee optimization for a small DAO token. The proposal creates a novel tiered market structure where the DAO captures revenue from large trades needing liquidity depth while smaller trades flow to individual LP pools at lower fees, effectively incentivizing broader market-making participation.

## Relationship to KB
- [[deans-list]] — parent entity, fee structure governance
- [[futardio]] — governance platform

## Full Proposal Text

*Source: futard.io, tabled 2025-01-14*

### Summary
Increase DAO swap liquidity fee from 0.25% dynamic pool to 5% DLMM base fee (up to 10%) to generate sustainable treasury revenue.

### Rationale
Current 0.25% fee insufficient to generate meaningful treasury revenue, support operational costs, or build reserves. Average daily volume ~1,541 USDC generates minimal inflow.

### Implementation
- Create DLMM pool with 5% base fee, bin step of 80
- Change quote token from mSOL to SOL
- Fee reclaiming done monthly by DAO treasurer (@1xraccoon)

### Tiered Market Structure
- Large trades: prefer DAO pool (high liquidity, 5% fee, less slippage)
- Small trades: individual LP pools (lower fees ~0.25%)
- DAO captures revenue from large trades; contributors incentivized to provide smaller pools

### Growth Scenarios (with fee increase)
| Scenario | Volume Change | Monthly Fee Revenue | Annual Growth |
|----------|--------------|-------------------|---------------|
| Conservative | -30% | 1,618 USDC | 19,416 USDC |
| Moderate | -20% | 1,849 USDC | 22,188 USDC |
| Optimistic | -10% | 2,080 USDC | 24,960 USDC |

### TWAP Calculation
Current MCAP (-5% adjustment): $298,889
Pass threshold: $307,855 (MCAP + 3%)